Thursday, October 01, 2009

Transfer of Property Act_2

Arjun transfers his property to Bhanu for life and after Bhanu’s death to that of his unborn sons as shall first attain the age of 25 years and if no son of Bhanu shall attain that age, to Chandan who is living at the time of the transfer. Decide the validity of this transfer.

As per Section 13 of the Transfer of Property Act, 1882, transfer of property to an unborn person can only take place if before such a transfer; a life estate is transferred to a person existing at the date of transfer. Moreover, it should not be a partial interest, but the entire interest that is transferred to the unborn. The vesting of absolute interest in favour of an unborn person may be postponed until he attains full age. Such an unborn person should get full rights to that property, and no further rights can be created to that property after those of the unborn. Hence, the transfer is valid till it pertains to the transfer in favour of Bhanu, but the transfer to Chandan is not valid, as he is living at the time of the tranfer, while the sons of Bhanu are as yet unborn.

Limitation Act_1

Arpit took a debt of Rs.10,000 from Bharat on January, 1998 and promised to pay by 31st December, 2003. He could not pay such debt within the stipulated time. On 1st December, 2006, Arpit paid Rs.500 as interest against such debt to Bharat against receipt. Bharat filed a suit against Arpit to recover such debt on 15th December, 2008. Whether the suit filed by Bharat is within the period of limitation ? Decide with reasons citing relevant provisions of the law.

As per section 19 of the Limitation Act, 1963, where part payment of debt or interest on debt is made, then a fresh period of limitation begins from that date. The limitation period for loans and contracts is three years. Since the interest is paid on 1st December, 2006, and the suit against Arpit to recover such debt is filed on 15th December, 2008, it is within the limitation period.